Workers in the U.S. pay several types of taxes on income including state taxes, FICA taxes and federal income tax. Your federal income tax rate is based on the amount of money you make. Income is broken into levels called tax brackets (or pockets). The table below shows the tax brackets for 2021 for a single person.

Recall that taxable income is the gross income minus any allowable deductions. For the purposes of this problem, we assume that the only deduction taken is the standard deduction for a single person which in 2021 is $12,550.

Taxable Income	Tax Rate for this Bracket
$0 $9,950	10%
$9,951 $40,525	12%
$40,526 $86,375	22%
$86,376 $164,925	24%
$164,926 $209,425	32%
$209,426 $523,600	35%
$523,601 or more	37%

What tax rate does everyone pay on the first $9,950 of their taxable income? %

Calculate the income tax for a person whose gross salary is $36,000. Be sure to first subtract the standard deduction! $

Calculate the income tax for a person whose gross salary is $88,000. Be sure to first subtract the standard deduction! $

Find the effective tax rate for the person in part (c). Round to the nearest tenth of a percent. %

Tax rate	Single	Head of household	Married filing jointly or qualifying widow	Married filing separately
10%	$0 to $10,275	$0 to $14,650	$0 to $20,550	$0 to $10,275
12%	$10,276 to $41,775	$14,651 to $55,900	$20,551 to $83,550	$10,276 to $41,775
22%	$41,776 to $89,075	$55,901 to $89,050	$83,551 to $178,150	$41,776 to $89,075
24%	$89,076 to $170,050	$89,051 to $170,050	$178,151 to $340,100	$89,076 to $170,050
32%	$170,051 to $215,950	$170,051 to $215,950	$340,101 to $431,900	$170,051 to $215,950
35%	$215,951 to $539,900	$215,951 to $539,900	$431,901 to $647,850	$215,951 to $323,925
37%	$539,901 or more	$539,901 or more	$647,851 or more	$323,926 or more